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First Business

News/Business. Angie Miles. (2012) New. (CC) (Stereo)

NETWORK
FOX

DURATION
00:30:00

RATING
G

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel 93 (639 MHz)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

U.s. 5, Michigan 5, Us 4, Angie 3, Erin J. Morgart 2, Bill Clinton 2, Jake Reid 2, Aig 2, S&p 2, Dan Deming 2, Larry Shover 2, Mayer Blogs 1, Texting 1, Seattle 1, Chicago 1, Fargo 1, Larry 1, Rick Snyder 1, Angela 1, Ben Bernanke 1,
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  FOX    First Business    News/Business. Angie Miles.  
    (2012) New. (CC) (Stereo)  

    December 12, 2012
    4:00 - 4:29am PST  

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rally on! what across-the-board gains in the stock market are signaling. in today's cover story, the final boxes of twinkies are hitting store shelves. how far would you go for the last one? the business of modeling. why it takes more than looks to succeed on the runway. and, christmas may not come early on capitol hill. will lawmakers strike a deal on avoid the fiscal cliff by the new year? plus, union members flock to michigan's capital. the changes ahead for the workforce in the great lakes state. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning and happy 12-12-12! i'm angela miles. in today's first look: the market rallied into today's anouncement from the federal reserve which includes a news conference from fed chair ben
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bernanke. the dow is now up for the 5th session in a row. the other big news - oil was a gainer for the first time in 6 sessions. explosive details are emerging that fedex was "systematically overcharging" businesses and the goverment. the emailed comments were released in court documents in a class action lawsuit. a fedex official says the documents don't tell the whole story. and shares of rare earth molycorp fell 5% on word the cmpany is seraching for a permanent ceo. larry shover of sfg alternatives joins us now for an early look at the market. good morning to you. and are we waiting for qe 4? > > i think we are, and i think we are going to see it. we saw the rally yesterday. i think a lot of that was just expectations that central bank liquidity is going to be with us for quite a long time. > we have had quite a rally in the market of late. what is going on there? > > we had a great rally, especially yesterday's rally, very macro-driven. and what i mean by that - it wasn't like
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one sector was rallying. we saw industrials, materials, technology, everything going up in concert. it was a very, very healthy rally. > so, what do you sell here larry? or do you just ride the wave? > > if you are in the equity market, i think you need to stay at normal valuations and just not worry with all the noise around you, because it's really priced in. fundamentally, the stock market is undervalued right now because of all the noise in europe, the fiscal cliff, and china. with that in mind, i think your best bet is to stay near normal valuations for 2013. > there is nothing you want to take off the table right now, right? take some profits home so you don't have to deal with the tax gains issue of next year? nothing? > > put it this way: i would rather be in financials and materials than i would be in energies and utilities. so if you are overweight in energies and utilities, perhaps sell that. i think the best group next year is going to be financials and materials. > run with the banks. good to have you on the show. that is larry shover of sfg alternatives. > > thank you. legislation dramatically shrinking the power of unions has won approval in michigan. last night, governor rick snyder signed two bills into law that change michigan into a right-to- work state. thousands of protestors for and against the measure staged demonstrations inside and outside the capitol in lansing, michigan. despite shouts from pro-union workers, the gop-led house okayed 2 bills that essentially stop public and private sector workers from
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being forced to pay union dues, with exceptions for police and fire fighters. some people consider it a form of "union busting." "we're going to challenge it in court. it's discriminatory. it's anti-worker. we hope to put it on the ballot. we're going to get petitions. all of labor is united on this." michigan, home of the uaw and the big three automakers, will now become the 24th right-to- work state in the u.s. we may have to wait until after christmas for a budget deal. that's what senator harry reid tells reporters. talks on the fiscal cliff appear to be hitting a wall as democrats and the gop remain stuck on the latest offers from each camp. the gop is stuck on extending bush-era tax breaks for the wealthy, and republicans say the president is failing to reduce government spending. "where are the president's spending cuts? the longer the white house slow-walks this process, the closer our economy gets to the fiscal cliff."
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"we have been calling on the speaker to bring forth a middle-income tax cut now for a very long time - in fact, since last summer when it passed the united states senate." here's a side-by-side check of where they stand: the president's plan calls for a raising $1.6 trillion in revenue by boosting tax rates on the incomes above $200,000 for individuals and $250,000 for couples. president obama also recommends $400 billion in spending cuts. representative boehner's calls for $800 billion in new revenue, $600 billion in savings from medicare and medicaid, and $300 billion from other domestic programs. in a big slip for small business, confidence took a tumble in november. the national federation of independent business says its confidence index of small biz owners dropped 5.6 points last month - that's one of the largest drops the study has ever shown. the group says the fiscal fiasco in washington, along with the upcoming healthcare overhaul, is shattering optimism within the sector. however, it's not all doom and gloom. some
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business owners are expecting better sales and improving credit conditions in the new year. if you've had a positive experience at a jp morgan bank of late, you're not alone. the nation's largest bank by assets has jumped to first place in the american customer satisfaction index, edging out perennial favorite wells fargo. the survey interviews 70,000 customers each year on their satisfaction levels with checking, savings and personal loan accounts. bank reputations have taken a hit recently in the wake of bailouts and higher fees assessed to customers. three men have been arrested in the u.k. in connection with libor manipulation. they are the first arrests made in connection to the rate-rigging scandal, which began in july. barclays admitted to controlling the benchmark interest rate and was forced to pay $453 million in a settlement. the men remain unidentified. other big banks including ubs, jp morgan, citigroup and hsbc are still
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being investigated for possible connections to the libor scandal. general motors, struggling with an overstock of their full- sized trucks, is hoping to unload some inventory. the car company is trying to boost sales with an enhanced package of incentives for poetential buyers - a good thing for consumers, not necessarily for gm. the car giant had earlier vowed to hold off on such promotions in order to shield profits through the end of the year. the government is poised to make a $22 billion profit on its bailout of aig. the treasury department said this week it will sell its remaining shares of the insurance company. that consists of 234 million shares, or 15.9% of the company. it marks an end to the bailout the government gave to aig at the start of the financial crisis. thousands of supporters and opponents are expected at a public hearing on fracking today in albany, new york - and there could be friction. conservationists say hydraulic fracturing for gas is harmful to the environment, while supporters claim it creates jobs and more domestic oil.
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today in upstate new york marks the final opportunity for public comment before the the department of environmental conservation makes a final decision. in a speech today, former president bill clinton will use his star power to talk about the growth of wind power in the midwest. one study shows adding wind energy to the grid saves midwest consumers between $65 and $200 per year. bill clinton has become an increasingly strong proponent of renewable energy, and specifically wind power. the former president is using his global presence to push for private and governmental adoption of clean energies. in her first major move since becoming ceo of yahoo, marissa mayer is calling for a complete overhaul of its email. the new design has a cleaner look and fewer ads. mayer blogs that's what consumers want. competition is tough in the webmail space, especially as more teens prefer texting. web- based email edged up just 1.1% in september of 2012 compared to last year. site-wise, aol was down 8%, hotmaiil was off by 18%, and yahoo down by 16%.
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gmail, however, gained 16%. nothing draws a crowd like the last of anything. even if its made of artificial ingredients such as cellulose gum, which is also found in rocket fuel. such is the send-off consumers are giving to the last twinkies made for now in the u.s. and sent off to market. a sugar-rush worthy of black friday fell throughout chicago supermarket chain jewel-osco. the last 20,000 boxes of twinkies distributed by hostess brands were snapped up as if it was the fountain of youth in a sponge cake. "i used to eat them. when i was a kid, i enjoyed them." hostess brands filed for bankruptcy november 16th. since then, a cream-filled wave of nostalga has transformed the junk food into an icon of americana to be preserved - as if it needed help being preserved. "the shelf life of these will
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be a long time." [laugh "they're just gonna have one, not tons." at this store, 171 boxes went in less than a half-hour - some destined to show up on ebay, others to provide a look back in time. "i just want my kids to have some since they won't be around anymore." reportedly, the hedge funds that assumed control of hostess brands are in active talks with more than a hundred potential buyers for the name, recipe and rights to twinkies and other products. sales have been down for years, but this flash of popularity helps sell the argument that the name is popular even if the product is but a corn-dextrin ghost from lunchtime past. for the record, twinkies have a shelf life of 25 days. still to come:
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being a supermodel takes more than a pretty face. what business off the runway is really like - later on with a model turned fitness trainer. but first: if you're looking for a last-minute holiday getaway, we'll tell you the cheapest day to fly. stay tuned for that, next.
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w there is a lot happening up in the air. this week, delta confirmed it will buy a 49%
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stake in virgin atlantic. the deal will give delta more business out of london's busy heathrow airport. meanwhile, american airlines and u.s. airways are creeping closer to merger talks. american's pilots' union has accepted an offer to begin merger talks with u.s. airways. depaul university transportation professor joe schwieterman says the merger will likely happen in the coming months. "there is a sense of inevitability to this, that there just aren't enough merger partners. this has been discussed for so long, there's not any real strategic reason for why this should be stopped. it's really just a case of can american go a different direction and not play the merger game to grow? i think though the stars have aligned and this is likely to be a done deal within the next few months." scwieterman says "the time has come for u.s. airways to merge," noting that the airline's performance is strong, but in need of support. a common mantra of "use it or lose it" is happening around workplace these days. as in: use your vacation days... or lose it all. let's talk to jake reid of
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expedia for some travel tips. good to have you on the show this morning. you look awfully cool. > > [laugh > > thanks for having me, and you are absolutely right - a lot of americans are losing it, and they are not taking their vacation days. we want to help travelers feel comfortable booking that trip and taking advantage of the vacation days they have. i certainly did that. i am down here in miami beach, fla., at the palms hotel and spa, taking a little vacation from the rainy seattle weather that i am getting used to now this winter. > other than where you are right now, what are some other great locations, some last- minute deals? > > we are seeing a lot of travelers on expedia book in three places: doing what i did, which is to come to the beach, get away from the cold weather and escape and relaxe. there is also a big trend of ski vacations, taking advantage of lake tahoe or vail, colorado, and really getting away with the family. and then of course, it's the holidays, so you have to go see grandma, and we're seeing a ton of travelers book
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those trips home to spend time with family, whether they are hopping in the car to save a little money and hitting the road, or just hopping on a flight and booking a hotel with that to save some money. > i don't know if you saw this are not, but the ceo of marriott is out giving people tips on how to get great deals at his hotel chain. what are your great tips for people who want to go on expedia.com? > > we see that one of the best days to book an airfare is on tuesday. that is typically when the fares are the lowest. a trick is to book your travel date on a wednesday, which is the least popular day of the week to travel, so therefore the fares are better. so, again, you have to have flexibility to do that, but there are savings to be had. on expedia, it really is important that you book your hotel and your airfare together if you can, because you can save $500, $600 on a trip that way. and then for hotels, stand- alone hotels, booking on our mobile app. what we see a lot of people do and take advantage of is, within 24 hours of their
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stay, getting on their phone, downloading the app, looking at hotels near where they want to go. you can save 10%, 12%, just by doing that. > did not know that. good to have you on the show this morning. that is jake reid of expedia. still ahead, a business-savvy supermodel spills her secrets on what it takes to make it in the industry. that's next.
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america's next top model and project runway are among the tv hits giving a new look at the modeling industry. show stars heidi klum and tyra banks have turned their modeling careers into multi-million dollar ventures. supermodel erin j. morgart joins us with the inside scoup. she is a supermodel of course, and i should point out you are harvard-educated and a member of mensa. and you are not the norm. so why do you think you were so successful at turning a deling career into more of a business venture? > > thank you for having me on the show. i believe that the reason why i have been successful is because i have hired the right people, i have gone the right path, i have hired a publicist, which is
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imperative, i have hired a manager, i have done photo shoots with the right people, i have avoided the pitfalls that many models fall into. i am a person of faith, and i believe that using that intelligence has guided me in my career, and i am branding myself as not only a model, but a person, a brand. > how can somebody out there make sure that they don't run into those pitfalls, that they make the right decisions with hiring managers and agents? > > i think a lot of it is word- of-mouth, talking with other models, connecting with the right people, finding out what the pitfalls are and basically just having a general intuition about the business. also, the main thing is just to believe in yourself and believe in your capabilities. also have education to fall back on, which i do, and i have started out with that from the very beginning. i intend to not just stay as a model, but to branch out. startup costs, along with that: the worst are the photo shoots. they aren't going to pay you to do the photo shoots. you pay them to do the photo
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shoots. so, you have to be able to invest a couple thousand dollars at the very minimum to have these things done along with your press kits, all of that. > we are running out of time. final question: is it a good time or a bad time to be in the modeling industry? > > right now modeling is not great, but being something other than a model and broadening your horizons is the greatest thing to do right now. getting into acting, getting into spokespersonship, presentations, things of that nature, charity. those things are very hot right now. that is what i'm all about. > erin j. morgart. great to speak with you today. best wishes for your career. > > thank you. why traders are paying attention to more than just the technicals in the market. chart talk is next.
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in chart talk this morning, dan
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deming of stutland equities joins us. good morning dan. it has been a while. > > it has angie. thanks. > we heard from a trader at the top of the show who was mostly bullish on buying this market right now. you tend to be bearish. what is your feeling? > > "cautious" is what i like to say. > cautious. > > it's interesting. right now, from a technical standpoint, you'd have to say that all things look pretty good. but, we have seen the technical indicators kind of give misleading signs this past year. we have seen the market kind of break down, where technically we were supposed to get out of the market. so, really the technical indicators have been a little bit of, not too great of indicators so far. but, from that standpoint, you are looking at the s&p right now pushing up toward those november highs. we are back up toward those highs right before the election. we saw that in the
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nasdaq as well, and the dow. all three major indices are right there. from a technical standpoint, if you look at the s&p 500, we broke through that 50-day moving average yesterday. another way to look at it is the reverse head and shoulders move, which a lot of technicians are looking at right now. we are breaking back on what they call the neckline. so both those indicators are bullish. > they are bullish. ok. but as you say, there is a big caveat, because the charts have had a tendency to be inaccurate this year, which is interesting in itself. does that tend to happen? > > no it doesn't. this is the year that if you strictly traded from a technical standpoint, i don't think you have done very well. but the fundamentals in the marketplace have also been kind of a misleading indicator. it has been a very difficult year really, by and large, from a trader's standpoint, to kind of play this market, because a lot of these indicators have kind of given you a little bit of false indication at certain times. but right now, from a technical standpoint, this market looks pretty good. we have been up
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five days in a row heading into today angie, so there is a little hint that this market might be a little bit over- extended as it hits these key levels. but, a little consolidation here, maybe some news out of the fed later this afternoon, could be the catalyst that could push us higher. > thank you dan deming of stutland equities. > thanks angie. that's it for today. coming up tomorrow, movies and money. our critic has a preview of "the hobbit." will it be the next big moneymaker at the movies? from all of us at first business, have a wonderful wednesday.
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. just a couple of hours ago a woman gave birth on a san francisco street. we will tell you what we learned from police. >> people were screaming, people were being shot. >> following a deadly shooting with people packed inside a mall with shoppers. complete bay area coverage starts right now. this is ktvu channel 2 morning news. good morning, thank you for joining us on this wednesday morning, 12 / 12 / 12. >> i am brian flores, some would say it is a very lucky day. >> there you go, there is